ST. PAUL, Minn. – Deluxe Corp. reported a 28% decline in net income, and a 3% drop in revenues for its third quarter, as its core checks business continued to erode.
Deluxe said third quarter net was $36.7 million, down from $50.8 million for the same quarter last year. Revenues were $355.1 million for the quarter, compared to $367.6 million last year.
Deluxe said much of the decline was due to a $25 million contract settlement last year, but its main checks business continued to fall as consumers opt for electronic transactions. Revenues for its financial services business, which sells checks to credit unions and banks declined 17% in the quarter, to $85.2 million; while revenue for its direct checks unit, which sells checks directly to consumers, dropped by 5%, to $55.5 million.
Deluxe said revenues for its small business operations, which is a growing part of its business, grew by 4% to $214.4 million for the third quarter.
For the first three quarters of the year revenues were up less than 1% to $1.5 billion, and net income was done 11% to $104.8 million.
